The EURUSD is trading back near the highs for the day. Yellen’s comment that “supportive policy still needed in slow global recovery” may be contributing to the look back higher. In reality, rates at 0.00-0.25% is still a supportive policy. So is rates at 0.25% to 0.50%.

EURUSD trades back near the highs for the day and resistance levels.

EURUSD trades back near the highs for the day and resistance levels.

In any case, the EURUSD is up back between the 38.2%-50% of the move down from yesterday’s trend move lower, and other low levels including the Monday low at 1.2438 and the low from Wednesday at 1.24573. There is still time and scope for a squeeze up toward the underside of the broken trend line and/or the 100 hour MA. I tend to dislike end of week trading as there can be a lot of different factors that can influence the liquidity and flows. So trade at your own risk. Shorts still remain in control though.

If the price does go up toward the 100 hour MA, however, it would be worth a shot selling against. I personally think the downside is still the favored way. Staying below this level (and up to 1.2500) does not threaten the shorts.